Saint Kitts and Nevis

  • Posted By : Admin
  • January 30, 2018
  • Tax havens
  • 0 Comments

Saint Kitts and Nevis is a Caribbean country that shares a boarder with well-known offshore jurisdictions such as Anguilla, Isla de Montserrat and Barbuda. Saint Kitts and Nevis became independent from the United Kingdom in 1983 and is a member of the Commonwealth.

General information

Capital
Basseterre
Official language
English
Area
261 km2
Form of government
Federal constitutional monarchy
Currency
Caribbean Dollar (EC$, XCD)
UTC time zone
UTC - 4
Legal system
Legislation is based on English Common law


Taxes for non-residents in Saint Kitts and Nevis

Saint Kitts and Nevis is the first offshore jurisdiction in the Caribbean. Currently natural and legal persons that do not reside in the country and whose income does not come from its territory are not obliged to pay taxes. Investors who decide to open a bank account or offshore company in Saint Kitts and Nevis will not pay taxes such as rent, corporation taxes, VAT, inheritance, donations and will not suffer the dreaded tax deductions for subsequent years. Those who keep their money in Saint Kitts and Nevis and repatriate them to their country of residence may save taxes through double taxation agreements.

Characteristics of Saint Kitts and Nevis Companies

Types of companies
International Business Company - IBC (equivalent to non-resident offshore companies) or Limited Liability Company, Ltd
Share capital
No minimum capital requirements
Constitution time
9 days IBC and 12 days for LLC
Taxes
Offshore companies are exempt from all types of taxes if their income does not come from the territory of Saint Kitts and Nevis.
Directors
1 director minimum. The director can be an individual resident of any country.
Shareholders
1 shareholder minimum. The shareholders can be individuals or companies with residence in any country.
Shares
Registered, without par value and Bearer
Legal address
A company registered in Saint Kitts and Nevis must have its legal address on the territory of the country. When the director of the company is a foreigner, a registered resident agent must be appointed, whose function will be to receive communications from governmental authorities.
Privacy
In Saint Kitts and Nevis the commercial registry is not public. For this reason the information related to the company is strictly private and all matters are carried out by the resident agent registered in the country.
Board meetings
Meetings of directors or shareholders are not mandatory and can be held anywhere in the world.
Accounting / annual audit
It is required to keep accounting records, however, the submission of annual accounts or auditing of accounts is not mandatory.

Financial system in Saint Kitts and Nevis

Financial services
Banks in Saint Kitts and Nevis are specialized in electronic commerce, payment processing, games and real estate investments. The client may request any type of financial services: current accounts, savings accounts, virtual pos, credit cards, foreign currency accounts, investment accounts in the stock market, credits etc.
Limitations of cash payment
There are no limitations on cash payments nor there is exchange control. Banks in Saint Kitts and Nevis can open accounts in numerous currencies Euros, US $, GBP, AUD, CAD, CNY, JPY.
Deposit guarantee
The banks cover up to $ 25,000 of customer deposits.

Automatic information exchange in Saint Kitts and Nevis 

Saint Kitts and Nevis has signed the automatic exchange of information treaty that has entered into force on January 1 of 2018 but has not signed a bilateral agreement with any country.

The signatory countries of the agreement

Year 2017
Anguilla, Argentina, Barbados, Belgium, Bermuda, British Virgin Islands, Bulgaria, Cayman Islands, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Germany, Gibraltar, Greece, Groelandia, Guernsey, Hungary , Iceland, India, Ireland, Isle of Man, Italy, Jersey, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Montserrat, Holland, Niue, Norway, Poland, Portugal, Romania, San Marino, Seychelles, Slovakia, Slovenia, South Africa, Spain, Sweden, Turks and Caicos Islands, United Kingdom.
Year 2018
Andorra, Antigua and Barbuda, Aruba, Australia, Austria, Bahamas, Barein, Belize, Brazil, Brunei, Canada, Chile, China, Cook Islands, Costa Rica, Curaçao, Dominica, Ghana, Grenada, Hong Kong (China), Indonesia, Israel, Japan, Kuwait, Lebanon, Marshal Islands, Macao (China), Malaysia, Mauritius, Monaco, Nauru, New Zealand, Panama, Qatar, Russia, Saint Kitts and Nevis, Samoa, Saint Lucia, Saint Vincent and the Grenadines, Saudi Arabia, Singapore, San Maarten, Switzerland, Trinidad and Tobago, Turkey, United Arab Emirates, Uruguay and Vanuatu.


The treaty of automatic exchange of information does not affect the fiscal status of the country, that is, if the tax laws in Saint Kitts and Nevis establish that people and non-resident companies pay 0% of taxes, the signing of the treaty will not make it pay taxes in Saint Kitts and Nevis. The treaty of automatic exchange of information is presenting many problems between countries since it is NOT a treaty in which automatic information will be reported to each other or all to all, that is, each country will have to sign a bilateral information agreement automatically with another country. What does this mean? If, for example, Russia is interested in exchanging information with Saint Kitts and Nevis but Saint Kitts and Nevis is not interested in reporting information to Russia, there will be NO information exchange and clients privacy will be protected. Currently, 30-01-2018 Saint Kitts and Nevis has not signed any bilateral agreement to automatically exchange information. You can see the updated list of countries that have signed bilateral agreements to exchange information automatically with each other.

The bilateral agreements with Saint Kitts and Nevis

Year 2017
No bilateral agreement has been signed for this year.
Year 2018
No bilateral agreement has been signed for this year.


The countries most affected by the signature of the automatic exchange of information treaties are going to be the countries of high taxation and not the offshore jurisdictions. It is expected that high tax countries sign bilateral agreements with each other with the corresponding problem that these have: competition in investments, tax competition and abandonment of investments in other jurisdictions by countries with lower or no taxation allowing legal repatriation of them to the country of fiscal residence.

Using offshore jurisdictions what can be achieved is a reduction and postponement of tax payments. As a general rule high-tax countries force natural and legal persons to declare all the world's income. But what happens when you have an offshore company and you do not divide dividends or have gone bankrupt? For example, a person has a company and account in Saint Kitts and Nevis, the company has generated annual benefits and the final beneficiary doesn’t want to repatriate them to his country of residence. So what happens? The answer is very simple: there will not be any kind of tax payment until the benefits obtained from Saint Kitts and Nevis reach the territory of a tax residence of the final beneficiary. Therefore, if you are required to report benefits obtained from abroad, it is advisable to inform your tax agency so when you will be offered a tax advantage in your country of residence to repatriate them.

Advantages of Saint Kitts and Nevis

Saint Kitts and Nevis is one of the best offshore jurisdictions to invest for the following reasons: 

  • There is no need to pay any kind of tax. 
  • Legal security guaranteed by law. 
  • Privacy
  • Jurisdiction specialized in Forex and Stock Market
  • Good telecommunications infrastructure. 
  • Little bureaucracy when it comes to obtaining financial licenses, companies formation and bank accounts opening. 
  • There is no restriction by nationality. 
  • Excellent geographical location. 
  • Economically stable financial center.